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Why Itís Worrying That U.S. Companies Are Getting Older
WSJ ^ | 8/4/14 | Asma Ghribi

Posted on 08/04/2014 4:44:01 PM PDT by Nachum

Edited on 08/04/2014 4:44:48 PM PDT by Admin Moderator. [history]

Not only is the American population aging, businesses in the U.S. also are growing older.

Older firms are increasingly controlling the largest market share in different sectors of the economy, according to a paper by the Brooking Institutionís Robert E. Litan and Ennsyte Economicsís Ian Hathaway. By 2011, the portion of U.S. businesses aged at least 16 years reached 34%, compared to 23% in 1992. Moreover, those mature companies went from employing only 60% of private-sector workers in 1992 to employing nearly three quarters of the private-sector labor force in 2011.


(Excerpt) Read more at blogs.wsj.com ...


TOPICS:
KEYWORDS: companies; obamanomics; older
Obamanomics.
1 posted on 08/04/2014 4:44:01 PM PDT by Nachum
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To: Jet Jaguar; NorwegianViking; ExTexasRedhead; HollyB; FromLori; EricTheRed_VocalMinority; ...

The list, Ping

Let me know if you would like to be on or off the ping list

http://www.nachumlist.com/


2 posted on 08/04/2014 4:44:49 PM PDT by Nachum (Obamacare: It's. The. Flaw.)
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To: Nachum

I think it is worrying as it indicates a lack of entrepreneurship and innovation.


3 posted on 08/04/2014 4:46:19 PM PDT by EBH (And the head wound was healed, and Gog became man.)
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To: EBH
I think it is worrying as it indicates a lack of entrepreneurship and innovation.

And it represents the destructive influence of government policy on the same.

4 posted on 08/04/2014 4:50:36 PM PDT by Nachum (Obamacare: It's. The. Flaw.)
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To: Nachum

Beretta started in something like 1526. They’re OK.


5 posted on 08/04/2014 4:54:05 PM PDT by sasquatch
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To: Nachum

In before....ah forget it.


6 posted on 08/04/2014 4:54:46 PM PDT by deadrock (I am someone else.)
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To: Nachum
It's the power of taxes to destroy younger companies and start ups. It's why big corporations love big government.
7 posted on 08/04/2014 4:55:02 PM PDT by Varda
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To: expat_panama

This is kinda interesting. Seems to me the more “smart” regulation we get the more barriers we put up for new businesses.


8 posted on 08/04/2014 4:55:07 PM PDT by Lurkina.n.Learnin (It's a shame nobama truly doesn't care about any of this. Our country, our future, he doesn't care)
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To: Nachum

K Street Lobbying payz off..........


9 posted on 08/04/2014 4:58:06 PM PDT by Paladin2
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To: sasquatch

1526?? What’d they make?? Catapults, flails and trebuchets?


10 posted on 08/04/2014 4:59:13 PM PDT by BipolarBob (I don't just play a bum on TV, I'm also one in real life.)
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To: Nachum

What’s it?


11 posted on 08/04/2014 5:03:33 PM PDT by right way right (America has embraced the suck of Freedumb.)
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To: Nachum

Regulations are meant to keep established companies in business and newbies out.


12 posted on 08/04/2014 5:08:10 PM PDT by Jonty30 (What Islam and secularism have in common is that they are both death cults)
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To: BipolarBob

They made arquebuses, a type of early smooth-bore matchlock used from the 15th through the 17th centuries.


13 posted on 08/04/2014 5:09:17 PM PDT by Milton Miteybad (I am Jim Thompson. {Really.})
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To: BipolarBob

...Whips & chains...


14 posted on 08/04/2014 5:15:03 PM PDT by sasquatch
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To: BipolarBob

I think it was actually gun powder.


15 posted on 08/04/2014 5:17:27 PM PDT by sasquatch
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To: EBH; GeronL; Dead Corpse; null and void; HiTech RedNeck
I think it is worrying as it indicates a lack of entrepreneurship and innovation.

I believe you're right; however, I am inclined to think these are symptoms rather than causes.
The causes are, I think, a combination of the following:

  1. Confiscatory taxation — there is little incentive to make when there is no profit in it.
  2. [De-]Motivation — it used to be that you could start at the bottom and work your way up; this is rapidly becoming untrue [at least in tech].
    I think a lot of it has to things like software patents and intellectual property — one friend I have left Google because they were trying to get him to sign on a new contract that would have made his own years-long research [starting years before they hired him] their intellectual property. (And anything else he produced in his free-time.)
  3. Male-Despising Society (Institutionalized Misandry)
    We now live in a society where being male is liability, frowned upon and, if we're honest, despised — this extends to those 'male' attributes like logical-thinking. We can see the disregard here easily in the legal-system where in order to challenge a statute which is on-its-face contrary to the Constitution requires you to violate the statute and thereby implicitly acknowledge its authority, and are forced to the weakened position of the accused.
  4. Cronyism
    Why play the game when the rules are changed to favor the special and punish the little guys?

16 posted on 08/04/2014 5:53:57 PM PDT by OneWingedShark (Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
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To: OneWingedShark

bump


17 posted on 08/04/2014 6:31:55 PM PDT by GeronL (Vote for Conservatives not for Republicans)
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To: Nachum; All

How about we ALL realize that those of us that will thrive, then, now and into the future, are those that understand that we are ALL Free Agents. Always were, always will be.

Needed, salable Skills matter. If you can’t make/create/repair/care for something, you’re useless.

And yes, that includes awesome nunchuck and computer hacking skills. ;)


18 posted on 08/04/2014 6:44:30 PM PDT by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set...)
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To: EBH

I think it is worrying as it indicates a lack of entrepreneurship and innovation.”

I used to have a mid-sized company but costs kept increasing so started downsizing to total of two. Impossible to grow beyond a certain point without increasing staff but I make a lot more money than I did when it was larger. Many friends in their early 50’s who absolutely cannot afford not to work have started their own cottage type businesses when they were phased out by the larger corporations.

There are lots of little niches out there to fill. It would be interesting to see exactly how much these types of businesses have increased over the past ten years. It definitely is the era to be creative, at least in this aspect of business.


19 posted on 08/04/2014 6:46:23 PM PDT by Grams A (The Sun will rise in the East in the morning and God is still on his throne.)
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To: Nachum

Thanks Obama, and the Obameconomy.


20 posted on 08/04/2014 7:29:00 PM PDT by JSDude1
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To: expat_panama; Wyatt's Torch; 1010RD
What we have been posting about in general, Ping-a-Ling.
21 posted on 08/04/2014 7:31:03 PM PDT by Chgogal (Obama "hung the SEALs out to dry, basically exposed them like a set of dog balls..." CMH)
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To: Grams A

Oh I agree with you...I found my niche as well.

What I do see though is a lot of folks who dropped out of the workforce these past 7 years...and very few of them have any motivation, passion or innovation potentials that they are pursuing.

Those old companies put a lot of people out to pasture and the government gives them too much to stay there.


22 posted on 08/04/2014 7:58:02 PM PDT by EBH (And the head wound was healed, and Gog became man.)
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To: Nachum

Forward.


23 posted on 08/04/2014 8:06:57 PM PDT by quesney (e)
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To: Nachum

Why work when you can get it for free.

Look at Europe. A barista that works 15 hours a month has the same incomas someone who works 160 hours a month.


24 posted on 08/04/2014 8:13:24 PM PDT by Organic Panic
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To: EBH

“Those old companies put a lot of people out to pasture and the government gives them too much to stay there.”

Nobody wants to hire them; if more and more work is unskilled anyway, would you rather deal with a kid you can pay peanuts or an older worker who might have a family and/or mortgage? Heck, even a rent or car payment is more than many young people today are contending with.

I’m shocked at how many young people haven’t just given up on having a family or home of their own; many will never own a new car or even rent their own apartment. Many deserve it due to their political apathy or liberalism, but how long can they watch re-runs of 80s movies (where teenagers bought and gassed cars of their own) before they realize they’ve missed the boat?

I’ve never owned a new car (and understood I probably never would when I started a family), but I live in a home (mostly owned by the bank via mortgage, but I still have use of it) and raise my children and couldn’t imagine life any other way at this point. I don’t envy these young people; it must be grim for them.


25 posted on 08/04/2014 8:31:58 PM PDT by kearnyirish2 (Affirmative action is economic warfare against white males (and therefore white families).)
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To: Chgogal

I’d like to compare this with Europe. What’s the trend over there, when did it start and what caused it? I’d expect, if this is driven by regulatory capture and an anti-commerce socialist climate, that Europe would be even worse off or that the trend would have started earlier.

Here’s I’d mainly blame the tax and regulatory regime, plus student debt and the lack of a real RE recovery (people borrow against their equity to form businesses or use credit card debt). Look at Kickstarter which is essentially a stock market without opportunity for the upside. Why are people boxed out of these opportunities and great ideas? SEC regulations.


26 posted on 08/05/2014 4:59:09 AM PDT by 1010RD (First, Do No Harm)
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To: Chgogal; Wyatt's Torch; 1010RD
The study says that we got more entrants and fewer exits in company formation.  At the same time we're seeing more early-stage failure.   Somehow I'm getting the idea that entrepreneurs are becoming increasingly gun-shy and that points to another sore spot in the economy.
27 posted on 08/05/2014 5:59:55 AM PDT by expat_panama
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To: expat_panama

As I have been saying, Obama is the most anti-business president in history.


28 posted on 08/05/2014 6:39:56 AM PDT by Wyatt's Torch
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To: expat_panama; Chgogal; Wyatt's Torch

The causes of early-stage failure are sundry, but clearly there’s an anti-business climate particularly in urban areas. See Uber, Lyft, Airbnb and the resistance they’re getting not to mention food trucks/carts.

What are you guys seeing?


29 posted on 08/05/2014 6:43:30 AM PDT by 1010RD (First, Do No Harm)
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To: 1010RD

Similar. There are innovative companies all over the place that face regulatory struggles thanks to crony “capitalism” (I hate that phrase because there is nothing capitalist about the government system in place now) protecting the status quo.


30 posted on 08/05/2014 8:05:53 AM PDT by Wyatt's Torch
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To: Wyatt's Torch

Love your handle. BTW, AS3 hits the theatres 9/12.


31 posted on 08/05/2014 8:20:00 AM PDT by Night Hides Not (Remember the Alamo! Remember Goliad! Remember Mississippi!)
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To: Night Hides Not

Thanks. I have Part II but have not watched it. Looking forward to seeing both.

$


32 posted on 08/05/2014 9:43:32 AM PDT by Wyatt's Torch
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To: EBH

I think there’s still plenty of entrepreneurship but the goal is different. Where once people started companies that they wanted to last forever now they’re starting companies that they want to sell. A favorite business plan, especially in tech, is take 5 years to get a good footprint and get bought before 10.


33 posted on 08/05/2014 9:50:45 AM PDT by discostu (Villains always blink their eyes.)
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